Annual report pursuant to Section 13 and 15(d)

TAX EXPENSE (Tables)

v3.8.0.1
TAX EXPENSE (Tables)
 12 Months Ended
Dec. 31, 2016
Tax Expense Tables  
Schedule of expense (benefit) for income taxes
    Year Ended December 31,  
    2016     2015  
             
Current:            
Federal   $ –     $ –  
State     –       –  
                 
Deferred:                
Federal     –       44,000  
State     –       –  
                 
Total Expense (Benefit) for Income Taxes   $ –     $ 44,000  
Reconciliation statutory tax rate
    December 31,  
    2016     2015  
             
Expected Income Tax Benefit at Statutory Tax Rate, Net   $ (9,469,000 )   $ (3,694,000 )
Non-Deductible Items     1,263,000       368,000  
Warrants Expense     –       1,196,000  
Derivatives Expense     –       (545,000 )
Net Operating Losses     –       2,667,000  
Change in Valuation Allowance     8,206,000       52,000  
                 
Reported Income Tax Expense   $ –     $ 44,000  
                 
Effective Tax Rate     – %    (0.49 %)
Deferred tax assets and liabilities
    December 31,  
    2016     2015  
             
Deferred Income Tax Assets:            
Allowance for Bad Debt   $ –     $ 74,000  
Warrants Expense     4,186,000       3,412,000  
Derivatives Expense     4,067,000       729,000  
Net Operating Losses     15,242,000       7,029,000  
                 
Deferred Income Tax Liabilities:                
Depreciation     (1,334,000 )     (44,000 )
                 
Total     22,161,000       11,200,000  
Valuation Allowance     (22,161,000 )     (11,244,000 )
                 
Net Deferred Tax Liabilities   $ –     $ (44,000 )